Valuation as decision support

Valuation of companies, projects and technology platforms is an important tool that effectively supports rational investment, licensing and prioritization decisions. Besides, scenario-based valuations are very effective in supporting R&D and commercial strategy development. And finally, valuation will guide setting of the terms in licensing deals.

Valuation of even early-stage projects is not witchcraft. On the contrary, we build confidence into our valuations. Our competences in performing valuations are based on our ability to seek out and generate the most relevant and well documented valuation parameters. We make transparent and justified assumptions and we perform the most critical sensitivity analyses. In particular, we put emphasis on the three main value drivers, which are:

• The technical risk (the risk of termination)
• The commercial risk (the future peak sales)
• The discount rate (in discounted cash flow-based valuations only)

Risk-adjusted Net Present Value

We are of course capable of customizing and using the relevant valuation models, such as risk-adjusted (rNPV) or expected (eNPV) net present value and adapted benchmarking, and we communicate our assumptions and the results of our valuations in an easy-to-understand way.